Daily Market Update 14th December 2016
ECONOMIC DATA OF THE DAY
|12:30||JN||Industrial Production MoM||--||--||-1.30%|
|12:30||JN||Industrial Production YoY||3.10%||--||3.39%|
|17:30||UK||Jobless Claims Change||6.5k||--||9.8k|
|20:00||US||MBA Mortgage Applications||--||--||-0.70%|
|22:15||US||Industrial Production MoM||-0.30%||--||0.00%|
- 20:15 – UK – Bank of England governor Mark Carney speaks in London
- Markets ended higher yesterday as the yields and the USD treaded water waiting on the FOMC decision to take place today at 2pm NYC time (3am SG/HK time). A hike is fully priced and expectations are for a middle of the fairway Yellen press conference, however give the risks of deviation from this script the market is in wait and see mode.
- Big dump of cyclical US data later today should be closely monitored as will indicate how the growth is shaping up. Retail sales, IP and PPI data all due this evening.
- German ZEW data came in better than expected showing a very positive uptick on the current situations number to 63.5 from 58.8 prior. German CPI data was bang in line with expectations and continues to show a benign inflation outlook.
- UK: CPI data surprised to the upside w8ith core up to 1.4% from 1.2% prior. The retail price index saw an upside surprise too at 2.2% y/y up from 2% prior.
FOREIGN EXCHANGE (INDICATIVE RATES)
|Currency||Last||% Change||Overnight Range|
|DXY||101.07||0.04||100.75 - 101.16|
|EURUSD||1.0630||-0.08||1.0604 - 1.0667|
|USDJPY||115.21||0.15||114.74 - 115.48|
|AUDUSD||0.7494||0.04||0.7476 - 0.7523|
|GBPUSD||1.2662||-0.17||1.2654 - 1.2728|
COMMODITIES (INDICATIVE RATES)
|Currency||Price USD||% Change||Overnight Range|
|Gold||1158.54||-0.32||1154.69 - 1165.09|
|Silver||16.92||-0.94||16.77 - 17.16|
|Oil (BRENT)||55.72||0.05||55.13 - 56.44|
|Oil (WTI)||52.98||0.28||52.35 - 53.41|
Precious Metals: Gold has a quiet trading session and still struggle to hold above $1160. Silver retraced back to below $17 and a convincing break above $17-$17.30 resistance zone. Otherwise, we see price of silver price being capped in the short term together with its gold counterpart.
Oil: Oil closed flat but intraday price movement suggests overhead selling/profit taking of the WTI (Jan) at levels above $53. An inverted hammer also can be seen for a straight 2 days, albeit a shorter upper tail shadow as compared to Monday. Market news on increased production of high cost oil producer is capping oil prices advance.
- Wall Street registered another tertiary record closes on Tuesday as a rally in the energy and tech sectors drove gains across benchmark indexes. The Dow Jones Industrial Average was up 0.58%, scoring a new record of 19,910. The S&P 500 gained 0.65% to 2,271, and the Nasdaq climbed 0.95% to 5,463.
- Airline stock JetBlue price jumped up by 4% after delivering a favorable update on November traffic and guiding for an improved fourth quarter. It anticipates revenue per available seat mile to decline by 1% to 2% in the fourth quarter, better than an anticipated 3% decline.
- European stocks advanced, boosted by investors' endorsement of UniCredit SpA’s 13 billion-euro ($13.8 billion) rights offer, which satisfied the market as it puts Italy’s biggest bank on a sounder footing. The Stoxx Europe 600 Index added 1.1 percent, from previous day's 0.5 percent decline.
- Commercial broadcaster Mediaset SpA surged almost 32%, the most in two decades after Vivendi SA acquired a 3 percent stake in the and said it may buy as much as 20 percent.
U.S. Stocks Climb to Record Highs as Energy, Tech Shares Rally
- S&P 500 resumes advance as utilities and phone shares gain
- Traders see Fed increase as virtual certainty Wednesday
U.S. stocks rallied to new highs as investors turned their focus to the Federal Reserve’s first policy decision and outlook since the U.S. elections due on Wednesday. The Dow Jones Industrial Average climbed for a seventh straight session and is fewer than 90 points from crossing 20,000.
The S&P 500 Index added 0.7 percent at 2,271.72 at 4 p.m. in New York. The Dow rose 0.6 percent to 19,911.21 while the Nasdaq 100 jumped 1.3 percent to 4,935.84, the highest ever. Small-cap shares were little changed, trailing S&P 500 for the second day in a row.
Read the full article at bloomberg.com